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Market analyst says profits are possible

An agricultural market analyst says his outlook is not as bearish heading into the new year as he was a year ago. 

Dan Basse with AgResouce Company says while prices are at all-time lows there are still opportunities for producers.

But, he says, farmers have to work for it.  “Looking at opportunities and managing risk,” he says.  “When corn gets to a level when they can make money – or soybeans or cattle – farmers need to take hedge protection or make cash sales.  That’s really what they need to be doing going forward.”

He tells Brownfield the days of sticking your head in the sand and hoping for a rally are over.

Basse says farmers can make money in these markets – and that’s evident in other countries.  “Although your plight today is not very good, by that I’m saying you’re not as happy with your net farm revenue,” he says.  “Farmers in Argentina, Russia, and Brazil are making lots of money – and that’s hard for American farmers to hear.”

Basse says there’s not really a light at the end of the tunnel – but with the diligent management and some belt tightening, profits, albeit small, are possible.

Basse was the opening speaker for the American Seed Trade Association CSS Meeting in Chicago.

AUDIO: Dan Basse, AgResource Company